We went over this last time and yes it's MPEG-2.For pure television watching EyeTV beats Windows Media Center hands down.
Besides if you get a pc with a HD TV decoder card you're gonna pay a bit more and that's the only way to watch live tv on a pc.
Customer Care is so typical. Best one.
I'm not going to pay $149 for an Elgato when I can pay $50 for the same hardware and just use Windows Media Center.
The Windows 7 version has a better guide and channel support. The Vista version had a better interface when managing though.